Why Two Weeks?

Answered by:

Question:

I recall reading a advisory from the Federal Reserve stating employees in a "sensitive" position must take at least two weeks vacation. They gave examples of tellers, wire transfer dept, proof operators. I need to know where to find this.

Answer:

We checked with our contact from Federal Reserve, and he checked with his legal department and his audit officer. There is no law or Federal Reserve regulation concerning vacations. However, the Federal Reserve issued SR-96-37 in late 1996 on required absences for sensitive positions. It states that it would be expected that a minimum of two consecutive weeks absence be required of employees in sensitive positions. The prescribed period of absence should, under all circumstances, be of sufficient duration to allow all pending transactions to clear, and to provide an independent monitoring of the transactions that the absent employee is responsible for initiating or processing. This practice could be implemented through either a requirement that affected employees take vacation or leave, the rotation of assignments in lieu of required vacation, or a combination of both so the prescribed level of absence is attained.

Note, however, that they do go on to state that some institutions, particularly smaller ones, might consider compensating controls such as continuous rotation of assignments in lieu of required absences, so as not to place an undue burden on the institution or its employees.

In addition, individuals having electronic access to systems and records from remote locations must be denied such access during their absence for the policy to be effective.

First published on BankersOnline.com 1/15/01. Updated 1/19/01.